What is a bid in a real estate auction?

A bid in a real estate auction refers to an offer made by a potential buyer for a property being auctioned. In the context of an auction, participants actively compete against each other by submitting bids, which represent the amounts they are willing to pay for the property. Each bid reflects the buyer's perceived value of the property and increases the excitement and potential sale price as the auction progresses.

Bids are typically made in increments, and the auctioneer manages this process by signaling when a bid is placed and inviting higher offers. The auction concludes with the highest bid winning the property, provided that it meets or exceeds any reserve price that may have been set.

The other options do not accurately reflect the concept of a bid. A final sale price set by the seller before the auction would not account for the competitive nature of an auction process, while a statement of intent to sell does not constitute an offer. Additionally, a minimum price set by the auctioneer, often referred to as a reserve price, is a baseline that needs to be met for the property to be sold, but it does not define what a bid is. Thus, the definition of a bid is clearly aligned with the first choice.